The former CEO of Florida telco Q Link will spend up to five years in jail after attempting to steal more than $100 million from two US government programs.
Q Link agreed to settle a case with the Federal Communications Commission over claims that it fudged records to claim millions from the Lifeline scheme, which arranges discounted phone services for low-income people. Owner and foormer CEO Issa Asad also pleaded guilty to money laundering after falsely applying for COVID relief payments.
"When individuals and corporations target programs that serve vulnerable populations to line their own pockets with millions, our office stands ready to investigate and pursue those allegations using all appropriate civil enforcement tools,” said US Attorney Hayden O’Byrne for the Southern District of Florida in a statement.
"This settlement addresses the integrity of the Lifeline Program, an important program that helps low-income Americans connect to people and information, a modern-day necessity."
The Lifeline program, established in 1985 by the Reagan administration, sees Washington send funds to telcos who serve low-income customers.
According to court documents [PDF], the Federal Communications Commission (FCC) suspected Q Link filed claims for Lifeline funds despite knowing some of its customers did not use their cellphones. Q Link knew of that investigation in 2014, but in later years continued to file false claims – even for phones that frustrated customers sent back to the...
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